SEC is investigating Coinbase over ‘securities’ listing

The Securities and Exchange Commission (SEC) is investigating whether Coinbase allowed Americans to commercialized unregistered information assets, Bloomberg News reported connected July 26.

The SEC has doubled its probe of the crypto speech since it accrued the fig of listed tokens connected its platform.

Coinbase present lists implicit 150 cryptocurrencies; aft keeping the fig of listed tokens to a minimum for years. The speech started listing much tokens successful 2021 to vie with its rivals.

Meanwhile, Coinbase’s main ineligible officer, Paul Grewal, tweeted that the speech was “look(ing) guardant to engaging with the SEC connected the matter.”

I’m blessed to accidental it again and again: we are assured that our rigorous diligence process—a process the SEC has already reviewed—keeps securities disconnected our platform, and we look guardant to engaging with the SEC connected the matter. A refresher: https://t.co/SaacvrZEiU

— paulgrewal.eth (@iampaulgrewal) July 26, 2022

SEC and securities

SEC’s president Gary Gensler has severally said galore integer assets would suffice arsenic securities nether the Howey Test, advising crypto exchanges to “come successful and speech to” the commission.

The Howey Test defines an plus arsenic information if it involves backing an concern declaration with the anticipation of recouping immoderate profits from the efforts of others.

However, the commission’s exertion of this model has divided the polity, with CFTC Commissioner Caroline Pham precocious saying the SEC has classified assets “that could beryllium described arsenic inferior tokens and/or definite tokens relating to (a) decentralized autonomous enactment (DAOs)” arsenic securities.

Read my connection connected #SEC v. Wahi, regularisation by enforcement & #CFTC authorization #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l

— Caroline D. Pham (@CarolineDPham) July 21, 2022

SEC and Coinbase frosty relationship

The SEC and Coinbase bask a frosty relationship. The publically listed crypto speech has severally criticized immoderate of the regulator’s actions implicit the crypto space.

The astir caller matchup saw Coinbase vehemently deny listing securities aft the SEC sued an ex-employee of the speech connected July 21 implicit allegations of insider trading.

According to the lawsuit, 9 integer tokens traded by the men were securities. Coinbase listed 7 of these tokens.

In response, the exchange published a blog post reiterating that it did not database securities and advised the SEC to absorption connected providing a regulatory model for the crypto industry.

In the lack of a factual integer plus securities regulatory model from the SEC, we stay assured that Coinbase’s rigorous reappraisal process keeps securities disconnected Coinbase’s platform.

The exchange’s CEO Brian Armstrong besides wrote a powerfully worded Twitter thread successful 2021 erstwhile the SEC threatened to writer the steadfast if it went up with its lending product.

1/ Some truly sketchy behaviour coming retired of the SEC recently.
Story time…

— Brian Armstrong – barmstrong.eth (@brian_armstrong) September 8, 2021

According to Armstrong, the SEC exhibited immoderate “sketchy behavior” implicit its oversight of the crypto space.

The station SEC is investigating Coinbase implicit ‘securities’ listing appeared archetypal connected CryptoSlate.